India 2008 Tea Output Seen Up On Higher Acreage

India’s tea production in 2008 is expected to rise 4.79 percent to 985 million kg on higher acreage, a senior Tea Board official said on Monday.

Tea output in the country saw a fall of 1.67 percent in 2007 to 940 million kg as drought and excessive rains damaged plantations in the eastern states, Gangan Boriah, director of tea development, Tea Board, told Reuters.

“We had planted more teas between 1998 and 2002… That is coming into bearing. Those teas are maturing now. So, we have factored that into it,” Boriah said.

EXPORTS SET TO DECLINE

India, the fourth largest tea exporter, may miss its export target this year due to lower offtake by Iraq, a major importer, and on a rising rupee, Boriah said.

Stiff competition from rivals Sri Lanka and Kenya also led to falling exports.

“Export figures for 2007 have not been finalised yet. However, it will be lower by around 30 million kg when compared to the volume of exports in 2006,” he said.

India had an export target of 210 million kg last year, as compared with 203.8 million kg in 2006.

However, the domestic consumption in the country is seen rising to 797 million kg in 2008. The estimated consumption last year was 780 million.

TEA PRICES TO REMAIN BUOYANT

Tea prices are likely to remain buoyant this year on lower domestic stocks and concerns output may be affected in Kenya due to political unrest and violence, Boriah said.

“The industry is looking forward to better prices now,” Boriah said. “International prices may rise due to problems in Kenya. Local demand is also rising. But, we don’t want the spike to be too steep as it may lead to ugly repercussions.”

This article was taken from: Reuters